These are the largest and most successful companies in America. They are name brands. You know just about all of them. They are not going to go away quickly. They are the leaders in the their categories. There are no small banks. No small tech companies. Just the biggest and highest performing companies in America.
So this is a quality listing of companies to invest in.
They are also quite stable in their ranking. This means we can hold them for a meaningful time. Weeks, months and even years, before they might fall to position 26 of the Rankings.
They are a manageable lot. We can form the Buy Zone from 10% of the Index listings, which gives us 10 stocks to purchase and own. Manageable. If we had chosen the S&P500, that’d be 50 stocks to pay attention to – quite unmanageable – and somewhat prone to human errors.
There are changes to the S&P 100 listing, mostly via acquisition and divestiture, but it happens. In 2020, for example, TSLA was not in the S&P 100.
Disney bought some of Fox, which left the remaining entity not large enough to enjoy being part of the S&P 100. So FOX was in the S&P 100 until that time.
Fun Fact – there are actually 101 stocks in the S&P 100. Alphabet Inc, has two stocks in its capital structure, mostly for Sergey Brin and Larry Page (founders) to retain their control of the company, GOOG and GOOGL.